St. Louis City Adopts Foreclosure Mediation Ordinance

Another mediation requirement

On February 27, the City of St. Louis adopted an ordinance requiring mediation in foreclosures within St. Louis. It is effective immediately. (This is separate from the mediation ordinance enacted by St. Louis County, which is currently stayed by order of the Missouri Court of Appeals.) 

St. Louis City, Missouri has enacted an ordinance that strongly urges the lender to mediate with the defaulting borrower (in owner occupied principal place of residence located in St. Louis City, Missouri) should that borrower respond favorably to a notice that mediation is available to avoid foreclosure. The ordinance goes into effect for all foreclosure sales of property in St. Louis City in which the notice of sale is sent after the ordinance became effective (February 27, 2013).

The ordinance provides two options: 1) proceed without participating in the mediation program, in which case the ordinance provides that any person violating the ordinance may be fined $500.00; or, 2) proceed through the mediation program to attempt to avoid the fine.

Information provided by Martin, Leigh, Laws & Fritzlen, P.C.